TAM/BAS and banking

There are strong parallels between the work of TAM/BAS and the investment priorities of the EBRD, which may invest in companies after a TAM/BAS project ends. Below is an outline of some of the ways in which the TAM/BAS has cooperated with the EBRD to date and some future opportunities.

To date, EBRD has financed directly or indirectly through EBRD supported financial intermediaries, 227 investments in 172 TAM/BAS enterprises. The EBRD's investment in the enterprises amounts to € 730 million, where almost two-thirds are loans and the remainder equity investments. A total project value of €1.6 billion has been mobilised by the investments.

EBRD Investments in TAM projects

TAM has been researching the developments of clients that it has served jointly with the EBRD, and reported that from the inception of TAM, around 97* TAM companies have mobilised at least €1.5 billion in loans and equity investments, of which about €645 million were invested by EBRD or EBRD-related financial intermediaries.

EBRD Investments in BAS projects

BAS has been researching the developments of clients that it has served jointly with the EBRD through information obtained from the enterprises one year after the completion of the project. To date, 82* BAS companies have mobilised €209 million in loans equity investment, of which about €132.5 million were invested by EBRD and EBRD-related financial intermediaries

TAM/BAS investments by region

* Please note: Some EBRD investments were made with enterprises that have undergone both TAM and BAS projects. The total financing does not double count these amounts (i.e. €730 million in 172 companies, with a total project value of €1.6 billion).

The TAM/BAS role in the EBRD

TAM/BAS is now an explicit core operational priority in the Bank’s overall SME strategy “pillar III” and in country strategies The linking of TAM/BAS expertise with banking teams and resident offices (ROs) can be achieved during both pre-investment and post-investment activities.

Pre-investment stage - TAM

• TAM projects with viable companies: TAM restructures and strengthens specific aspects (e.g., marketing, sales, design, human resources management) of viable companies, thereby building immediate pipelines of medium size to large companies for EBRD’s investments.
  
• Standard TAM projects: TAM builds potential pipelines of medium size to large companies for EBRD’s investments by developing potentially viable into fully viable companies.
  
• Industrial "due diligence": Industrial “due diligence” is performed by industry-specific TAM team coordinators/ senior advisors for small, medium and large enterprises.
  
• Business plans: Industry-specific TAM Team Coordinators/ Senior Advisors develop and/or review detailed business plans with companies.

Pre-investment stage - BAS

• Standard BAS projects: BAS builds immediate pipelines of investment projects for EBRD in MSME sector since BAS projects provide excellent "screenings" of companies.
  
• Business plans: Carefully selected local consultants can be used to develop business plans for MSMEs, preferably with advice from industry specific TAM team coordinators/senior advisors.

Post-investment stage - TAM

• TAM projects can ensure success of investments, but many donors (probably most) are reluctant to fund TAM post-investment. Those will need to be funded by the company and/or EBRD.
  
• Investment monitoring: Industry-specific TAM team coordinators/senior advisors can perform detailed monitoring of compliance with investment plans.
  
• Non-executive board members: Industry-specific TAM team coordinators/senior advisors are very effective non-executive board members for EBRD and EBRD-related financial institutions’ equity investments.

Post-investment stage - BAS

• Highly specific BAS projects can strengthen performance of companies in clearly-defined business aspects.